South African prosecutors to file Zuma appeal

By Paul Simao

JOHANNESBURG (Reuters) - South African prosecutors pushed ahead with an appeal in the graft case of ANC leader Jacob Zuma on Friday, dashing ruling party hopes the prosecution would collapse with the ouster of President Thabo Mbeki.

Mbeki, whose resignation followed a judge's suggestion of political interference in the case, was replaced on Thursday by new President Kgalema Motlanthe, who faces pressure from ANC allies to tilt policy to the left.

The National Prosecuting Authority made clear in a statement it would not let the Zuma case drop and said it would file an appeal with the Supreme Court of Appeal next week.

A High Court judge had earlier this month dismissed bribery, fraud and other charges against the ANC leader.

The African National Congress, now dominated by Zuma supporters, says the judge's indication there was high-level political meddling in the case justifies ending the pursuit of Zuma, the frontrunner to win the next presidential election, expected around April, 2009.

The argument has failed to sway prosecutors, who have spent years investigating Zuma, first for his role in an arms scandal and later for his relationship with a financial adviser who was convicted of fraud and other wrongdoing.

"The NPA (National Prosecuting Authority) will file its application for leave to appeal to the SCA next week," the NPA said in a statement. It is also opposing Mbeki's appeal against the ruling in the Constitutional Court for procedural reasons.

Its decision to file the appeal, coming just a day after Motlanthe's government was sworn in, is certain to galvanize Zuma's supporters in the ANC, the powerful trade union movement and small but influential South African Communist Party.

The initial announcement to appeal the September 12 ruling by High Court Judge Chris Nicholson triggered the ANC's removal of Mbeki before his term ended next year. The crisis was the nation's worst since the end of apartheid in 1994.

Zuma defeated Mbeki for the ANC leadership in a bitter contest late last year that divided the ruling party into two warring factions and raised investor fears of a change in the country's pro-business policies.

The ANC's trade union and communist allies are putting pressure on Motlanthe to steer policy to the left.

Motlanthe, the ANC's deputy president and a Zuma ally, said on Thursday there would be no dramatic changes to policy while pledging to intensify the battle against poverty and high unemployment.

In a move to reassure investors, Motlanthe reappointed powerful Finance Minister Trevor Manuel.

But markets are watching to see if Zuma's left-leaning allies in the ANC, the Congress of South African Trade Unions (COSATU) and the SACP can get Motlanthe to take a different course. The three parties have an alliance.

LEFTIST PRESSURE